MIAMI—How would you know if you were underinsured? Withhurricane season gearing up, now is a good time toconsider whether you have the proper insurance coverages on yourcommercial real estate assets.

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GlobeSt.com caught up with Evan Seacat, adirector for Franklin Street Insurance Services,to talk about this and other insurance concerns you may need torethink in part two of this exclusive interview. You can still readpart one: What 2014's Hurricanes Could Cost You.

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GlobeSt.com: How do property owners know if they areunderinsured?

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Seacat: Property values suffered during therecession, but they are recovering. If you're not insured to thecorrect value at the time of loss, an insurance carrier can denyyour claim or penalize you for being underinsured. You, nor yourlender, will be happy.

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The remedy: Look at your current cost per square foot. If thefigure is more than $130 per square foot, it's probably time toorder a new appraisal. We are seeing concrete buildings thatqualify as fire resistive being appraised for $95 to $100 persquare foot and wood-roof buildings in the $80 to $90 square-footrange. That's probably too low.

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GlobeSt.com: Do commercial real estate owners need topay attention to construction records?

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Seacat: Get your facts wrong, and yourinsurance company could deny your claim. You'd be surprised tolearn that we regularly find buildings listed as having floors androofs made of combustible materials and having concealed spaces asbeing fire resistive.

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We have found that about one in every 10 properties is ratedincorrectly. You can save money today on your premium by having ahigher rating on your building than it deserves, but when a majorstorm hits, expect the insurance company to penalize you forproviding inaccurate information when you applied for coverage.

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GlobeSt.com: How do I know what the right deductibleis for my property?

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Seacat: Most property owners look for a lowdeductible so the insurance carrier bears the brunt of the cost ofrepairing a building damaged by a hurricane. However, that lowfigure comes with a higher premium.

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If you are looking for savings today, consider increasing yourhurricane other peril deductibles. Be sure to consult your lender;they may want to weigh in on how much risk they're comfortable withyou assuming.

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